SANTA BARBARA, Calif.--(BUSINESS WIRE)--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $1,409,000 ($0.32 per share) for the third quarter ended September 30, 2016, compared to the $133,000 ($0.05 per share) reported September 30, 2015. For the nine months ended September 30, 2016 unaudited net income was $3,015,000 ($0.69 per share), as compared to the $938,000 ($0.35 per share) achieved for the same reporting period last year prior to the merger.
As of September 30, 2016, the Bank reported $347 million in total loans with no other real estate owned. Non-interest bearing demand deposits have increased to 35% of the $392 million in total deposits at September 30, 2016, an increase from 32% one year ago.
Jeff DeVine, President and Chief Executive Officer stated, “It has only been 9 months since we completed the merger with The Bank of Santa Barbara and our financial results are already reflecting the synergies from that merger. Common share count is up 63% from one year ago as a result of the merger, however earnings per share are up 98%.”
As of September 30, 2016 American Riviera Bank had $464 million in total assets, and maintained a strong capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. For the first nine months of 2016, the Bank recorded a return on average assets of 0.95% and a return on average equity of 8.69%. The tangible book value per share of American Riviera Bank’s common stock is $10.24 and the book value is $11.40 at September 30, 2016, an increase from the $10.47 book value at September 30, 2015.
Company Profile
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and the surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Offices are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, and 5880 Calle Real in Goleta. As a result of the merger, American Riviera Bank became the second-largest community bank based in the city of Santa Barbara. For six consecutive years the Bank has been recognized for strong financial performance by the Findley Reports. As of June 30, 2016, the Bank was rated five stars by BauerFinancial.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.
Balance Sheets (unaudited) | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Sept 30, | Sept 30, | One Year | ||||||||||||
2016 | 2015 | Change | ||||||||||||
Assets | ||||||||||||||
Cash & Due From Banks | $ | 52,996 | $ | 18,551 | 186 | % | ||||||||
Fed Funds Sold | 38,458 | 5,415 | 610 | % | ||||||||||
Securities | 6,581 | 6,184 | 6 | % | ||||||||||
Loans | 347,345 | 191,372 | 82 | % | ||||||||||
Allowance For Loan Losses | (3,226 | ) | (2,374 | ) | 36 | % | ||||||||
Net Loans | 344,119 | 188,998 | 82 | % | ||||||||||
Fixed Assets | 1,351 | 893 | 51 | % | ||||||||||
Goodwill | 5,071 | - | N/A | |||||||||||
Other Assets | 14,996 | 6,964 | 115 | % | ||||||||||
Total Assets | 463,572 | 227,005 | 104 | % | ||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||
Demand Deposits | 135,757 | 62,558 | 117 | % | ||||||||||
Interest Bearing Deposits | 256,418 | 135,478 | 89 | % | ||||||||||
Total Deposits | 392,175 | 198,036 | 98 | % | ||||||||||
Borrowed Funds | 20,000 | - | N/A | |||||||||||
Other Liabilities | 1,643 | 891 | 84 | % | ||||||||||
Total Liabilities | 413,818 | 198,927 | 108 | % | ||||||||||
Common Stock | 42,946 | 24,735 | 74 | % | ||||||||||
Retained Earnings | 6,810 | 3,357 | 103 | % | ||||||||||
Other Capital | (2 | ) | (14 | ) | -86 | % | ||||||||
Total Shareholders' Equity | 49,754 | 28,078 | 77 | % | ||||||||||
Total Liabilities & Shareholders' Equity | $ | 463,572 | $ | 227,005 | 104 | % | ||||||||
Book Value Per Share | $ | 11.40 | $ | 10.47 | ||||||||||
Tangible Book Value Per Share | $ | 10.24 | $ | 10.47 | ||||||||||
Statements of Income (unaudited) | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Quarter Ended | 9 Months Ended | |||||||||||||||||||||||
Sept 30, | Sept 30, | Sept 30, | Sept 30, | |||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||||
Interest Income | ||||||||||||||||||||||||
Interest and Fees on Loans | $ | 4,780 | $ | 2,472 | 93 | % | $ | 14,237 | $ | 7,061 | 102 | % | ||||||||||||
Loan Fair Value Accretion, net | 194 | - | N/A | 771 | - | N/A | ||||||||||||||||||
Interest on Securities | 23 | 23 | 0 | % | 80 | 75 | 7 | % | ||||||||||||||||
Interest on Fed Funds | 36 | 3 | 1330 | % | 52 | 13 | 295 | % | ||||||||||||||||
Interest on Due From Banks | 44 | 31 | 42 | % | 123 | 109 | 12 | % | ||||||||||||||||
Total Interest Income | 5,077 | 2,529 | 101 | % | 15,263 | 7,258 | 110 | % | ||||||||||||||||
Interest Expense | ||||||||||||||||||||||||
Interest Expense on Deposits | 190 | 92 | 107 | % | 591 | 284 | 108 | % | ||||||||||||||||
Interest Expense on Borrowings | 30 | - | N/A | 66 | 22 | 198 | % | |||||||||||||||||
Total Interest Expense | 220 | 92 | -140 | % | 657 | 306 | -115 | % | ||||||||||||||||
Net Interest Income | 4,857 | 2,437 | 99 | % | 14,606 | 6,952 | 110 | % | ||||||||||||||||
Provision for Loan Losses | 137 | 163 | -16 | % | 388 | 163 | 138 | % | ||||||||||||||||
Net Interest Income After Provision |
4,720 | 2,274 | 108 | % | 14,218 | 6,789 | 109 | % | ||||||||||||||||
Non-Interest Income | ||||||||||||||||||||||||
Service Charges, Commissions and Fees | 295 | 149 | 97 | % | 927 | 430 | 115 | % | ||||||||||||||||
Other Non-Interest Income | 103 | 48 | 113 | % | 254 | 163 | 56 | % | ||||||||||||||||
Total Non-Interest Income | 398 | 197 | 102 | % | 1,181 | 593 | 99 | % | ||||||||||||||||
Non-Interest Expense | ||||||||||||||||||||||||
Salaries and Employee Benefits | 1,823 | 1,047 | 74 | % | 5,780 | 2,957 | 95 | % | ||||||||||||||||
Occupancy and Equipment | 395 | 262 | 51 | % | 1,161 | 798 | 45 | % | ||||||||||||||||
Merger Related Expenses (non recurring) | (81 | ) | 255 | -132 | % | 938 | 421 | 123 | % | |||||||||||||||
Other Non-Interest Expense | 1,015 | 460 | 121 | % | 2,561 | 1,422 | 80 | % | ||||||||||||||||
Total Non-Interest Expense | 3,152 | 2,024 | 56 | % | 10,440 | 5,598 | 86 | % | ||||||||||||||||
Net Income Before Provision for Taxes |
1,966 | 447 | 339 | % | 4,959 | 1,784 | 178 | % | ||||||||||||||||
Provision for Taxes | 557 | 314 | 77 | % | 1,944 | 846 | 130 | % | ||||||||||||||||
Net Income | 1,409 | 133 | 957 | % | 3,015 | 938 | 222 | % | ||||||||||||||||
Shares (end of period) | 4,362,930 | 2,683,254 | 63 | % | 4,362,930 | 2,683,254 | 63 | % | ||||||||||||||||
Earnings Per Share - Basic | $ | 0.32 | $ | 0.05 | 550 | % | $ | 0.69 | $ | 0.35 | 98 | % | ||||||||||||
Return on Average Assets (annualized) | 1.23 | % | 0.20 | % | 0.95 | % | 0.55 | % | ||||||||||||||||
Return on Average Equity (annualized) | 11.25 | % | 1.64 | % | 8.69 | % | 4.59 | % | ||||||||||||||||
Net Interest Margin (annualized) | 4.57 | % | 4.52 | % | 4.84 | % | 4.24 | % | ||||||||||||||||
Net Interest Margin (excluding FV amortization) | 4.37 | % | 4.52 | % | 4.57 | % | 4.24 | % | ||||||||||||||||